I don't know about "ID 1", but I do know if you have multiple controllers you need the one you want to use set as "Preferred device" for MTM2 to read it (which may be the equivalent to ID 1).
Here's the MS Knowledgebase article for MTM2 not detecting controllers:
http://support.microsoft.com/kb/317645/en-us
Quote:
Follow these steps to select the device that you want to use as the preferred device:
1. Quit the game.
2. Click Start, and then click Control Panel.
3. Do one of the following:
• If you are prompted to pick a category, click Printers and Other Hardware, and then click Game Controllers. -or-
• If you have the classic view in your Control Panel, double-click Game Controller.
4. Click Advanced.
5. In the Preferred device box, point to the arrow, and then click the controller that you want to use.
6. Click OK twice.
7. Start the game, and then select the controller.
